I have been fortunate enough to launch my real estate career by helping several first time home buyers and Columbia SC relocation clients. Both to these types of clients usually ask....
What's the first step in buying a home or Who should home buyers call first for help in buying a home?
With today's post, I would like to address another common question.
What are the current mortgage interest rates?
If you ask any real estate or mortgage professional that is worth their weight in silver, they can give you an accurate estimate of today's 30-year Fixed Interest Rate. However, questioners should also ask about the fine print that is attached to those rates.
For example, here's a section of this morning mortgage flyer...
|
Loan Type |
Rate |
APR |
|
40 Year Fixed |
6.750 |
6.990 |
|
30 Year Fixed |
6.000 |
6.270 |
|
No Fee Mortgage PLUS, 30 Yr. Fxd. |
7.375 |
7.480 |
|
15 Year Fixed |
6.000 |
6.250 |
|
30 Year Fixed, Jumbo |
7.750 |
7.880 |
|
15 Year Fixed, Jumbo |
7.000 |
7.300 |
|
5/1ARM |
5.875 |
6.270 |
|
5/1ARM, Jumbo |
8.125 |
7.090 |
|
5/1ARM Interest Only |
6.125 |
6.370 |
|
5/1ARM Interest Only, Jumbo |
8.125 |
7.020 |
It's very common to hear someone answer the INTEREST RATE question by saying..........
Today's interest rate on a 30-Year Fixed Mortgage is 6%.
However, it's important to get all the information that's related to an interest rate quote.
For example, this is what was at the bottom the aforementioned interest rate flyer................
"These rates are assuming a 680 credit score, at least 5% down, and a loan amount of at least $100,000."
Translation..........If you don't have a 680 credit score and the ability to make about a $5200 downpayment, that 6% interest rate might not apply to you.
Plus, you haven't asked about ORIGINATION FEES and other costs for borrowing the money (aka APR).
Before you make a positive or negative judgment on any interest rate quote, GET ALL THE FACTS and that would include a Good Faith Estimate.
If you are buying a home for the long term, ANYTIME IS A GREAT TIME TO BUY a home! However, educated buyers make better decisions. Hire real estate and mortgage professionals that will educate you about the process. You'll be better for it!
Happy House Hunting!
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